Effectiveness - hdbk750210053

Lessons Learned Handbook:

DOE-HDBK-7502-95

If our customers are satisfied

If our processes are in control

If and where improvements are necessary

A performance measure is composed of a number and a unit of measure. The

number gives us a magnitude (how much) and the unit gives the number a meaning

(what). Performance measures are always tied to a goal or an objective (the target).

Performance measures can be represented by single dimensional units like hours,

meters, dollars, number of reports, or number of errors. They can show the variation

in a process or deviation from design specifications. Single dimensional units of

measure usually represent very basic and fundamental measures of a process or

product.

More often, multi-dimensional units of measure are used. These are performance

measures expressed as ratios of two or more fundamental units. These are units like

miles per gallon, number of accidents per million hours worked, or number of on-time

vendor deliveries per total number of vendor deliveries. Performance measures

expressed this way almost always convey more information than the single

dimensional or single unit performance measures. Essentially, performance measures

should be expressed in units of measure that are the most meaningful to those who

must use or make decisions based on those measures.

Most performance measures can be grouped into one of the following six general

categories. However, certain organizations may develop their own categories as

appropriate depending on the organization's mission:

1. Effectiveness: A process characteristic indicating the degree to which the

process output (work product) conforms to requirements. (Are we doing the

right things?)

2. Efficiency: A process characteristic indicating the degree to which the process

produces the required output at minimum resource cost. (Are we doing things

right?)

3. Quality: The degree to which a product or service meets customer

requirements and expectations.

4. Timeliness: Measures whether a unit of work was done on time. Criteria must

be established to define what constitutes timeliness for a given unit of work.

The criterion is usually based on customer requirements.

5. Productivity: The value added by the process divided by the value of the labor

and capital consumed.

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